Zoetis Inc Q2 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Ryskin - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Great. Congrats on the quarter, guys. I want to start first with the Trio Derm franchise at a high level. You spent a lot of time talking about competition and how you've been able to retain meaningful share not really seeing any incremental erosion. I'm just wondering if you've had any change in your go-to-market strategy in terms of how you approach things as you've seen more and more entrants in both of those markets. Are competitors being more aggressive on price? And you called out retail alternate channels. Is that an area you're leveraging to sort of retain your First-mover Advantage in those markets? And then for the follow-up, I want to ask on Librela. Kristin, I know you guys both emphasized the steps you're taking in terms of medical education, post the launch studies, engaging with pet owners. Just want to get a sense of your expectations on timing when we'll see the benefit for that. When do you think one to grow if you

Question: Erin Wright - Morgan Stanley - Analyst : Great, thanks. So it's a little early to talk about 2026, but just in light of the evolving competitive landscape as well as the innovation you have in the pipe, I guess, how are you thinking about your ability to still achieve high single-digit, 6% to 8% operational growth next year and some of those just like higher level headwinds and tailwinds as we head into not only the second half but also next year? And second question is on margins, were stronger in the quarter. I guess, can you speak to some of the areas that you continue to drive from a cost management perspective? And how do you think about the quarterly progression from an operating margin standpoint from here? Were there some timing benefits or other dynamics at play in terms of the operating margin in the quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 12:30PM, ZTS.N - Q2 2025 Zoetis Inc Earnings Call

Question: Brandon Vazquez - William Blair Capital Partners - Analyst : Congrats on this quarter. I'll ask two upfront here. One is just on the follow up on Librela. I'm just curious what -- can you talk a little bit about what you're hearing on Librela? Why the slowdown? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 12:30PM, ZTS.N - Q2 2025 Zoetis Inc Earnings Call I think we talked a lot about the positive clinical data around this. I think you even have a randomized controlled trial for Librela that actually read pretty positively against traditional oral medication. So what are you hearing from the doctors? So we can better understand what vets want to see and know in order to reaccelerate the usage there. And then the follow-up question I'll ask just quickly here is, is there anything more granular, Kristin, you can give us in terms of pipeline, life cycle innovation, anything like that, that we should expect probably, let's call it, over the next 12 to 18 months, just to give investors an idea of what drivers there can be for growth? Thank you.

Question: David Westenberg - Piper Jaffray Inc - Analyst : So with just increased competition in oral, dermatology, are there any strategies that are to actively leverage and promote Cytopoint, the injectable alternative in order to maintain and potentially grow market share in the overall dermatology franchise. I know you've mentioned about these under-medicalized pets. I mean, is there an opportunity with Cytopoint to go after these and highlight the differentiated benefits of that? And then can you just remind us what the growth rate of Cytopoint is versus the orals? And specifically, have you seen any slowdown in biologics or injectables as a category? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 12:30PM, ZTS.N - Q2 2025 Zoetis Inc Earnings Call And then for my second question, I just wanted to get a clarification on the contract manufacturing human health. There's a big

Question: Jonathan Block - Stifel, Nicolaus & Company Inc - Analyst : Nice quarter. Just a couple. What was the Companion Animal growth in the alternate channel for the quarter, if I've got that framing correct? And then, is there a way to quantify some of the stocking -- I believe that you referenced earlier in the call, just any details you can give there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 12:30PM, ZTS.N - Q2 2025 Zoetis Inc Earnings Call And, Kristin, anything on International Librela? I mean, we're sort of familiar with the struggles or some of the issues in the US. But International, it's been quieter, I think, just from like a headline perspective, yet we did see the growth rate decel in flatlining if you

Question: Chris Schott - JPMorgan - Analyst : I just want to come back to parasiticides, I think you mentioned in the US, you've now moved to about 45% share in debt practices for triples. I was just curious in terms of where you think that market can go over time. So kind of what inning of the transition to these newer products are we currently? And maybe while also sticking on prices, it sounds like there hasn't been much of an impact from Quattro, but can you just elaborate a bit more what you're seeing competitively with that new entrant coming this year?

Question: Navann Ty - Exane SA - Analyst : One pipeline question, if you -- do you still expect approval of the long-acting OA Pain this year? And how is the dialogue with the FDA and/or the EC? And we know that the long acting will be marketed under a different brand name than Librela and better dosing and COGS, and could you discuss your expectation on the safety profile, if possible? Thank you.